AfDB  signs five-year agreement to use international  standards in contracts agreements

No Comments Share:

Image result for AfDB

The  African Development Bank(AfDB) has signed a major agreement with the International Federation of Consulting Engineers (FIDIC) that will see it  use  seven FIDIC standard contracts for the next five years.

Under the terms of the agreement, a statement said  FIDIC has granted the Bank a non-exclusive licence to refer to the seven major FIDIC contracts for projects they finance and the documents may be used as part of the Bank’s standard bidding documents. The contracts include the latest 2017 Second Edition FIDIC contracts and 1999 editions, which cover a wide range of international construction and infrastructure work.

The move by the African Development Bank is another significant endorsement for FIDIC contracts from a multilateral development bank, following similar agreements signed with the World Bank, Inter-American Development Bank, Caribbean Development Bank, the European Bank for Reconstruction and Development and the Asian Infrastructure Investment Bank in recent months.

FIDIC chief executive Dr. Nelson Ogunshakin said: “We are delighted to have signed this agreement with the African Development Bank, an organisation doing fantastic work fighting poverty and improving living conditions for people in Africa. The signing of this agreement means that FIDIC has now entered into similar licencing agreements with almost all of the major global funding organisations. By adopting the FIDIC contracts on major projects, the AfDB is demonstrating that they endorse the fair and balanced approach that these documents offer to parties on major construction contracts and we believe that this will create more certainty in the market as banks, lenders, investors and clients adopt them.

“The Bank’s endorsement should also provide additional comfort to the financial, institutional and private equity investors operating in the global market to adopt the use of FIDIC standard procurement contracts as an effective tool to mitigate the risks associated with investable infrastructure asset class.”

Commenting on the agreement, the Bank’s Director of Fiduciary Services & Inspection, Mr. Frank Mvula said: “ We are glad to have concluded an agreement with FIDIC that would enable us to incorporate FIDIC contracts in some of our standard bidding documents. There is no doubt that the use of FIDIC contracts is a step towards enhancing equity and fairness as well as efficient and effective contract management as emphasized under the Bank’s new Procurement Framework.”

FIDIC President Bill Howard said: “I’m delighted that FIDIC has concluded this agreement with the African Development Bank. It’s a key aim of ours to strengthen FIDIC’s relationships with the multilateral development banks and other international funding institutions as improved communication and cooperation will bring benefits to the whole industry. Agreements like these can only be good for FIDIC, the global infrastructure sector and the banks and I look forward to a mutually beneficial relationship with the Bank over the coming years.”

Previous Article

7.5% VAT kicks off as Buhari signs Finance Bill

Next Article

7th day Fidau prayer & Reception for Late SEC Chairman, Alhaji Gbadamosi Otiti in Lagos

You may also like

Leave a Reply

Your email address will not be published. Required fields are marked *